Is Alphabet a Top Artificial Intelligence Stock to Buy for 2026?

Core Viewpoint - Alphabet has experienced a significant stock increase of 65% in 2025, outperforming major tech competitors, but concerns about sustaining this performance in 2026 are emerging [1][2]. Group 1: Performance in 2025 - Alphabet's stock performance in 2025 has been exceptional, with a 65% rise, making it one of the best-performing big tech stocks [1]. - The company is expected to potentially become the second-largest company globally, following Nvidia, as it heads into 2026 [2]. Group 2: Challenges Faced - At the beginning of 2025, Alphabet faced skepticism regarding its future, particularly concerning its core Google Search business and its position in the generative AI landscape [4]. - Concerns included a pending court case regarding its monopoly status and competition from AI models like OpenAI's ChatGPT, which were perceived to outperform Alphabet's Gemini model [5]. Group 3: Market Sentiment and Recovery - Investor sentiment was bearish, with Alphabet's stock trading at less than 14 times forward earnings at its lowest point in April, indicating a negative outlook [6]. - Positive developments, such as favorable news regarding the monopoly court case and the successful integration of AI into Google Search, helped shift market perception and contributed to the stock's rise [7].